June 15th was World Elder Abuse Awareness Day, serving as a reminder to financial institutions of the vital role they play in protecting older adults from financial exploitation. As trusted stewards and advisors of our communities’ finances, banks are uniquely positioned to detect and prevent elder financial abuse.
Elder financial exploitation is one of the most common and underreported forms of elder abuse. Victims may be reluctant to speak out due to shame, fear, or dependence on the perpetrator. That’s why early detection and proactive support from banking professionals are critical.
Many resources are available to help combat elder financial exploitation, and there are many steps a bank can take to implement internal controls to mitigate the loss to those most at risk. In December 2024, the FDIC released an Interagency Statement on Elder Financial Exploitation that highlighted several options for banks, including:
- Enhancing or creating risk-based policies, ongoing monitoring practices, and complaint processes to identify, measure, monitor, and mitigate elder financial exploitation.
- Provide training for employees on recognizing, deterring, addressing, and responding to elder financial exploitation.
- Placing transaction holds and disbursement delays when used appropriately and in compliance with applicable laws and regulations.
- Establish policies and procedures that enable account holders to designate one or more trusted contacts that bank employees can contact when elder financial exploitation is suspected.
- Voluntarily file Suspicious Activity Reports for suspicious activities and suspected violations of law or regulation that otherwise do not meet the requirements for mandatory filing, which may include suspicious activities related to elder financial exploitation.
- Expedite documentation requests and consider providing financial records to APS, law enforcement, or other investigatory agencies for active elder financial exploitation cases, consistent with applicable law.
- Engaging with elder fraud prevention and response networks that include professionals from various agencies and organizations.
CCI encourages you to check your state laws for additional guidance and protections for financial institutions in detecting, reporting, and preventing Elder Financial Exploitation. The Interagency Statement on Elder Financial Exploitation also includes many additional resources for financial institutions. We encourage all banks to share resources and spread awareness to protect the most vulnerable in our communities.
As always, CCI will happily answer any questions to help our banks combat Elder Financial Exploitation!
Stay vigilant!